Adani Power, Druk Green Power Ink Deal to Develop 770 MW Hydroelectric Plant in Bhutan

Bhutan’s Adani Power is strengthening its association in hydropower with Druk Green Power Corporation (DGPC), signing a deal to collaboratively work on developing the 770 MW Chamkharchhu-I Hydroelectric Project. 

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The two firms have inked the shareholders’ agreement on October 5 and will set up a joint venture firm in Bhutan for the development of the project. 51% of the venture will be owned by DGPC, and Adani Power will have the rest of 49%. 

The deal represents the second major hydropower project that the two companies will be developing together in line with the larger strategy of 5,000 MW of hydropower potential in Bhutan. 

Adani Power and DGPC to Share Board Representation 

While DGPC will hold the majority stake in the new project company, both partners will have equal representation on its board. 

Adani Power and DGPC will each have the right to appoint three directors. They will also contribute additional capital as required in the agreed 49:51 proportion. 

At the outset, the project company will issue 4.9 million shares to Adani Power and 5.1 million shares to DGPC. Each share will be issued at BTN 100. 

Adani Power clarified that DGPC is not related to its promoter or promoter group and that the agreement does not qualify as a related-party transaction. 

Construction Expected to Start in First Half of 2027 

Chamkharchhu-I is slated to be constructed in the river of Chamkharchhu, Zhemgang District of Central Bhutan. 

It is envisaged that Chamkharchhu-I project shall be built as peak run-of-river hydropower and the project shall be developed using the Build, Own, Operate and Transfer concept. 

Commencement of construction work on the project is expected in the first half of 2027 and following that, the partnership plans to complete the project in six years. 

The project company shall be awarded 30-year concession from the date of commercial operation. 

Electricity Project to Fulfill Bhutan’s Electricity Needs in Winter 

The electricity produced by Chamkharchhu-I is likely to cater to different demands during different seasons. 

During winter, the electricity project is designed to help Bhutan fulfill its demand for electricity. During the summer season, excess electricity can be exported to India. 

Anil Sardana, Adani Power Managing Director, said that the electricity project would enhance the collaboration of the company with the Royal Government of Bhutan and DGPC. 

Dasho Chhewang Rinzin, DGPC Managing Director, said that the partnership is a part of the continuing energy partnership of Bhutan with India. 

Second Major Hydro Project Between the Partners 

Chamkharchhu-I follows another sizeable project already being pursued by Adani Power and DGPC. 

In September 2025, the two companies signed an agreement for the 570 MW Wangchhu Hydroelectric Project. 

Both projects sit within a much larger hydropower partnership. The Adani Group and DGPC had signed a memorandum of understanding in May 2025 to explore the development of 5,000 MW of hydropower capacity. 

The two organisations are continuing to evaluate additional projects under that programme. 

For Adani Power and DGPC, Chamkharchhu-I therefore represents more than a standalone 770 MW development. It is the second project to emerge from a broader partnership that is gradually taking shape around Bhutan’s hydropower resources and cross-border electricity flows with India.